A Degrowth Economy Explained

This page is dedicated to illustrating a transformative vision for the future: a degrowth economy. Here, we invite you to explore an alternative economic model that champions ecological sustainability, social equity, decoloniality, and collective well-being over the relentless pursuit of growth. Our goal is to clarify the concept of degrowth, making it accessible and inspiring to everyone.

In high-income countries, the excessive use of energy and materials contributes significantly to climate change and environmental degradation. However, those same countries often struggle to meet the basic needs of their populations, such as housing, healthcare, and nutrition. Addressing this dual issue requires a different economic approach, as what we've been doing so far isn't working.

To begin, it's necessary for countries that have overshot ecological limits to scale back on non-essential production and consumption to lessen environmental impacts and decarbonise more rapidly. This means making changes such as:

Reducing reliance on cheap fossil energy
Reducing the use of material-intensive luxuries like SUVs, private jets, and oversized homes,
Stopping unsustainable practices such as the industrial production of meat and the culture of fast fashion.
Curbing the wealth excesses of the very rich
Promoting public transportation over private vehicle use
Fostering a culture of durability and reparability in consumer goods

Simultaneously, the focus must shift toward enhancing social progress and human well-being by:

Guaranteeing universal access to high-quality essential public services like healthcare, education, childcare and transportation
Ensuring affordable housing and living wages for all
Implementing a public job guarantee (a programme where the municipal government provides jobs to those willing and able to work and is funded nationally)

A public Job guarantee could serve as a cornerstone of this social change. On the one hand, it would provide labour in sectors crucial for ecological restoration and social welfare, like insulating homes, building renewable energy, and regenerating ecosystems. At the same time, it would end unemployment and economic insecurity and contribute to improving human well-being and ecological stability.

In our current systems, economic decisions —what is produced, how, and for whom— primarily benefit a wealthy minority. In contrast, our new system requires economic democracy, where everyone has a say in these matters. Democratising the economy involves workplace democracy, giving employees a voice in the governance of their workplaces. This will likely steer priorities towards well-being and ecological health rather than profit maximisation.

Crucially, this transformation will have implications beyond high-income nations. The current global system enables the Global North to over-exploit resources, often coming from, and at the expense of, Global South societies. The current system worsens environmental and social issues in these regions, and this exploitative relationship must end through significant transformations of our financial and economic systems. A shift to a more equitable international economy would allow everyone to live decently within the Earth's ecological bounds. This would include compensating societies that, up to now, have been exploited (reparations) and sharing the technology that has been hoarded to help only a few countries (technology transfer). It also means ensuring that all of the world's societies are assured of their autonomy by owning and controlling their money, energy and food systems.

Crucially, Global North activists need to remember the historical impacts of their nations' history and power over other countries (imperialism, neo-colonialism and supremacism). They, therefore, need to push for transformative changes at home and make sure their leaders are held accountable. This way, their actions can also help those who are hurt by unfair and unjust international rules.

Embracing these changes does not mean rejecting technology. A balanced approach where technological innovation and efficiency improvements are pursued as long as they are sustainable, safe, and equitable should be encouraged. The focus is on using resources efficiently, distributing them fairly, and scaling down non-essential production to help societies achieve self-sufficiency and justice.

In essence, transitioning to a degrowth economy involves reimagining our economic systems to prioritise ecological sustainability, social equity, and the well-being of all over the endless pursuit of growth. It's about creating a future where we live within our planetary means while ensuring that everyone has access to the resources they need for a fulfilling life.

So, we find ourselves at the edge of largely uncharted territories. As we critique the status quo and advocate for change, it's crucial to embrace humility—acknowledging that while we're driven by data and the urgent need for action, we don't hold all the answers. We're learning to navigate these turbulent waters together with urgency, deep curiosity and openness.

Doing so demands empathy. We must recognise the varied backgrounds and beliefs that people hold, especially as many have been raised in a culture that seldom questions the virtues of constant growth.

Through this spirit of shared inquiry and compassion, we hope to lay a path forward, creating a degrowth economy that truly nurtures the earth, its people, and all the beings we often forget are our relatives.

Watch this excellent video by Andrewism - external link explaining degrowth for more information. The degrowth explanation starts at 21:45.

This description of degrowth was initially created by Jason Hickel - external link. It has been reworded, expanded and simplified to increase accessibility. The conclusion was originally written by JP Arellano - external link.

Learn more about degrowth in the pages below: